\u3000\u3 Shengda Resources Co.Ltd(000603) 214 Shanghai Aiyingshi Co.Ltd(603214) )
Event: the company released the first quarter report of 2022. In 2022q1, the company realized a revenue of 855 million yuan / year-on-year + 57.38%, a net profit attributable to the parent of -122715 million yuan (111158 million yuan in the same period last year), and a net profit not attributable to the parent of -169008 million yuan (2.4772 million yuan in the same period last year). We estimate that excluding the impact of Beibei bear consolidation, the company’s revenue is about + 20-30% year-on-year, and the store end revenue is basically the same.
Stores continue to adjust, online continues to shine, and Shanghai is disturbed. 1) Integrate back door stores and continue to adjust: in 2021q1, the company opened four new stores and one new store in Zhejiang / Fujian / Hubei / Sichuan; A total of 22 stores were closed, and 1 / 3 / 5 / 1 / 2 / 8 / 2 stores were closed in Shanghai / Zhejiang / Jiangsu / Chongqing / Hubei / Hunan / Jiangxi respectively. By the end of the period, a total of 508 stores had been set up nationwide. 2) Online performance continues to shine. In 2022q1, the company’s online business realized a revenue of 158 million yuan, a year-on-year increase of + 499.88%, accounting for 18.44%. 3) Shanghai may be affected by the epidemic, with a year-on-year income of – 12.09%, and the income of other regions is estimated to be basically stable year-on-year.
The gross profit margin decreased year-on-year, and the expense rate increased during the period. 1) In 2022q1, the gross profit margin of the company increased from -3.68pct to 25.26% year-on-year. By category, milk powder / consumer goods / cotton textile / food / toys / lathes -3.35pct / + 2.90pct / – 2.56pct / – 3.15pct / – 5.63pct / – 0.65pct, mainly due to online promotion and lower gross profit margin. 2) On the expense side, affected by Beibei bear’s consolidation and online promotion, the company’s sales expenses increased year-on-year. However, due to the revenue source of online business expansion, the company’s sales expense rate / management expense rate increased from -1.22pct / – 0.44pct to 21.95% / 3.11% year-on-year respectively. 3) Overall, the net profit margin attributable to the parent company was -3.48pct year-on-year, and the profitability was under pressure.
The company actively responded to the epidemic in Shanghai. At the beginning of March, the company entered the state of emergency guarantee at the first time. On March 23, as a professional mother and baby chain enterprise, the company became the first batch of key enterprises in Shanghai to ensure the supply of living materials, comprehensively ensuring the rapid supply of just needed goods. As of April 26, more than 40 stores in Shanghai have returned to work and production. They adhere to the combination of Wuxi Online Offline Communication Information Technology Co.Ltd(300959) and actively respond to the epidemic.
Investment suggestion: the company is a mother baby chain leader with outstanding reputation, product portfolio adjustment ability and efficiency advantages. The current short-term epidemic has been disturbed and is in the stage of store adjustment and M & A integration. It conforms to the trend of transformation and has an impact on profitability. It is estimated that the net profit attributable to the parent company in 2022 / 2023 will be 91 / 100 million yuan, EPS will be 0.64 and 0.71 yuan / share respectively, and the current share price corresponding to PE will be 24 / 22 times respectively, maintaining the “overweight” rating of the company and the target price will be 20 yuan.
Risk tips: 1) the epidemic has seriously affected consumption, resulting in the exhibition stores falling short of expectations for a long time; 2) The same store in Shanghai has fallen sharply for a long time; 3) Supply chain optimization is not as expected; 4) Industry competition has intensified.
